Under a _____, Risk of Loss (And Title) Remains with the Seller

question 31

Multiple Choice

Under a _____, risk of loss (and title) remains with the seller until the buyer accepts, and the buyer's trial use of the goods does not in itself constitute acceptance.

• A) shipment contract
• B) consignment sale
• C) sale-or-return contract
• D) sale-on-approval contract
• E) destination contract

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Definitions:

Adjusted Trial Balance

An accounting worksheet that reflects the account balances after adjustments are made for accruals and deferrals at the end of a reporting period.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, indicating the profitability over a specified time period.

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets.

Time Period Assumption

An accounting principle that assumes a business's complex and ongoing activities can be divided into shorter time periods, such as months, quarters, or years.